SQM shares surged as investors rotated back into lithium producers amid strengthening expectations for lithium pricing through 2026. The catalyst is renewed sell-side optimism on the sector—highlighted by a recent Deutsche Bank upgrade to Buy with an $88 price target—pointing to sharply higher lithium spot pricing versus mid-2025 levels and an influx of investor interest back into lithium names. (tipranks.com)

The bull case being repriced is that lithium is moving from a 2025 trough into a tighter 2026 market, with energy storage demand increasingly viewed as the incremental driver. Recent sector commentary has also leaned on the idea of an emerging structural deficit and higher medium-term price decks, which has been used to justify meaningfully higher EBITDA expectations for producers with scale and low-cost brine exposure. (uk.investing.com)

Beyond lithium tape momentum, SQM has an additional company-specific support: the Codelco-SQM structure around Salar de Atacama, which has been framed as reducing long-dated uncertainty around operating continuity and governance. The formal launch of the Nova Andino Litio joint venture in late 2025 marked the transition from approvals to implementation, supporting the view that SQM’s core Chilean lithium asset base is on a more stable long-term footing. (codelco.com)

Traders will look for confirmation that today’s move is more than a one-day risk-on swing—especially whether lithium pricing remains firm into early Q2 and whether additional analyst revisions follow. The next key company checkpoint is SQM’s upcoming earnings release date shown by market calendars for May 27, 2026, which could either validate the higher 2026 expectations or reset sentiment if realized pricing/volumes disappoint. (au.investing.com)